Organizations are inundated with demands for becoming sustainable. How do they achieve that goal when resources are constrained? Laura Rainier, senior director analyst with Gartner, explains.

Sustainability challenges confronting supply chain leaders today fall under two key categories, says Rainier. One is increased pressure on supply chain leaders “to drive action forward.” It takes the form of concern from multiple stakeholders, with a particular interest in the “complex and ambitious” legislative landscape.

The other big concern arises from requirements for supply chain resilience and sustainability. That can point companies in the direction of solutions for managing resources — whether raw materials, other types of manufacturing input or transportation capacity — which are becoming increasingly constrained. At the same time, businesses are under pressure to measure and reduce their greenhouse gas emissions.

All of this is part of a larger picture that Rainier describes as the full range of environmental, social and governance (ESG) compliance. Defined that way, sustainability has moved from “a nice thing to a business priority,” she says, adding that environmental and social progress concerns are “very much complementary.”

How can supply chain leaders even begin to address these challenges? “We begin by taking a step back,” says Rainier, “focusing on design.” That means engaging executives in new-product introduction, research and development and other aspects of supply chain design — all with sustainability in mind. “Developing sustainability into the product is a great way to address issues before they become a challenge downstream,” she says.

A key concept to keep in mind is supply chain orchestration, the process of coordinating all functions both within the organization as well as with the universe of supply chain partners. Of particular importance, Rainier says, is decision guidance — focusing on how leaders make decisions across the broader organization, with sustainability as a priority.

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